Appraised Value - What Exactly Is It?

Services for Real Estate Pros with Alamo City Homes Magazine

In pretty much any home transaction, the home needs to be appraised before the lender will give out any money for the home.  An appraiser is hired to do this job and find the appraised value of the home. Home appraisal is not an exact science, it is an opinion of value determined objectively.  Chances are, if you have 10 appraisers appraise the same house, you will get varying levels of appraised value. 

There are a few reasons why appraisals are conducted. While the most common one in a real estate transaction is usually based on market value, a few of the other reasons include:

  • Replacement Value
  • Assessed Value for Property Tax
  • Insurance Value

When the market conditions change, so do appraised values. It will never be constant.

Lenders will use which ever is lower between the sales price or the appraised value, in order to determine how much mortgage amount they will offer.


If you have any questions about buying or selling your home, please contact me, Eric D. Bolton, REALTOR. I will be pleased to help you in any way. Call me at 210.918.0307 or visit my website at


Comments (2)

James Wexler - Scottsdale, AZ


Great piece.  Here in AZ with the incredible fluctuations in our market appraisals have  become a not so precise science.  It is amazing how two appraisers can be so far apart in determining a property's  value.

by the way, Do you have an outside blog that I can add to my Blogroll ?

Thanks and look forward to reading your thoughts on the world of real estate.

Jun 16, 2008 05:31 PM
Mary Hillerman
Crye-Leike Realtors® - Bentonville, AR

Hi Eric, Hope you are doing well at the Alamo! Have a great spring season.

Apr 13, 2013 07:22 AM